Wrapped Tokens

Definition

Wrapped tokens are a way to use cryptocurrencies such as Bitcoin or Dogecoin on blockchains other than the blockchain they were originally built on.

Wrapped tokens are backed 1:1 by their underlying asset, which is stored in a digital vault.

Wrapped tokens are a solution to the problem of blockchain interoperability.

Thus, one of the most common usecase for them is in DeFi protocols, which operate on many different network for a same asset.

Some wrapped tokens:

Last updated 3 years ago